Setting Order Sizes and Schedules for Individual Subassemblies and Resources

question 13

Multiple Choice

Setting order sizes and schedules for individual subassemblies and resources by week or day fits best with which level of the generic framework for resource planning?

• A)Aggregate planning - Level 1
• B)Disaggregation - Level 2
• C)Execution - Level 3
• D)Capacity requirements planning

---

Definitions:

Variable Manufacturing Costs

Costs that change in proportion to the level of production or sales volume, including costs such as raw materials, direct labor, and certain utilities directly involved in the manufacturing process.

Flexible Budget

A flexible budget that adapts to variations in activity levels or volumes, promoting precise budgeting and forecasting.

Manufacturing Costs

Expenses directly associated with the production of goods, including labor, materials, and overhead.

Direct Materials

The primary raw inputs used in the manufacture of products, which are directly traceable to the production process.